An experimental approach to valuing information. (2nd January 2014)

• Record Type: Journal Article
• Authors: Klain, Tyler J.; Lusk, Jayson L.; Tonsor, Glynn T.; Schroeder, Ted C.
• Is Part Of: Agricultural economics. Volume 45:Number 5(2014:Sep.)
• Page Start: 635
• Page End: 648
• Publication Date: 2014-01-02
• Subjects: Agriculture -- Economic aspects -- Periodicals; 338.105
• DOI: 10.1111/agec.12112
• Languages: English
• ISSNs: 0169-5150

Abstract

<abstract abstract-type="main"> <title>Abstract</title> <p>This article proposes a method to directly measure the value of information (VOI) conveyed in a label. Using data collected from a field experiment conducted in two grocery stores in Texas, we find the VOI contained in U.S. federally mandated country of origin labels for beef and pork is 36% lower using the new direct elicitation compared to the conventional approach. The mean value‐of‐origin information, in the context of our experiment, ranges from $0.016 to $1.08 per pound of steak/chop purchased, depending on the valuation method used and assumptions about labeling knowledge and average volume purchased per choice. The VOI is substantively influenced by ethnocentrism and meat consumption frequency.</p> </abstract>